South Korea's Ministry of Economy and Finance (MOEF) announced how its concessional loan process will change post-COVID-19.
Finance Minister Nam-ki Hong stated that in light of global and domestic economic performances in 2020 and global economic outlooks for 2021, South Korea’s concessional loan program, the Economic Development Cooperation Fund (EDCF) will commit to the following:
- Diversifying development finance by increasing official development assistance (ODA) budget and fortifying public-private partnerships;
- Increasing investments in the green and digital sector, increasing the corresponding budget from US$5 million in 2020 to US$8 million in 2021 and US$1.4 billion by 2025;
- Increasing the concessional loan budget for healthcare up to US$1.0 billion by 2025;
- Strengthening partnership with multilateral development banks (MDBs) to address the financing gap that partner countries face while increasing co-financing scale with MDBs such as the African Development Bank and the Asian Development Bank;
- Raising the share of EDCF’s untied assistance which was around 46.4% in the last five years to over 60% by 2025; and
- Pursuing more effective management of the EDCF.
Concerning the climate crisis, MOEF announced that South Korea will hold the P4G Summit (Partnering for Green Growth and the Global Goals 2030) in Seoul in May 2021 and continue to cooperate with the Green Climate Fund whose headquarters is located in South Korea.